Securities and Exchange Commission
                           Washington, DC  20549
                               
                                  FORM 10-K
                              
    (Mark One)
    [  X  ] Annual report pursuant to section 13 or 15(d) of the Securities
    Exchange Act of 1934 [Fee Required]
    For the fiscal year ended October 31, 1997 or
    [     ] Transition report pursuant to section 13 or 15(d) of the
    Securities Exchange Act of 1934 [No Fee Required]
    For the transition period from _________ to ___________

    Commission file number 0-12619
                              
                              
                         Collins Industries, Inc.
        (Exact name of registrant as specified in its charter)
                              
                   Missouri                                               
    (State or other jurisdiction of incorporation)
                                                      43-0985160            
                                      (I.R.S. Employer Identification Number)
                              
           15 Compound Drive    Hutchinson, Kansas           67502-4349  
           (Address of principal executive offices)          (Zip Code)
                              
    Registrant's telephone number including area code    316-663-5551   
                              
    Securities registered pursuant to Section 12(b) of the Act:

         Title of each class    Name of each exchange on which registered

                  None                             N/A

         Securities registered pursuant to Section 12(g) of the Act:

                   Common Stock, Par Value $.10 per share
                               (Title of class)
                              
    Indicate by check mark whether the registrant (1) has  filed all reports
    required to be filed by Section 13 or 15(d)  of the Securities Exchange 
    Act of 1934 during the preceding 12 months (or for such shorter period
    that the registrant was required to file such reports), and (2) has been
    subject  to such filing requirements for the past 90 days.

                                  Yes  X     No   

    Indicate  by  check mark if disclosure of delinquent  filers pursuant to 
    Item  405 of Regulation S-K is  not  contained herein,  and  will not be
    contained, to  the  best  of  the registrant's  knowledge, in definitive
    proxy of  information statements  incorporated by reference in Part III
    of  this Form 10-K or any amendment to this Form 10-K.  (X)
                              
    The aggregate  market value of voting stock  held  by  non-affiliates of
    the registrant was $28,588,014 as of January 19, 1998.

    The number of shares of Common Stock outstanding on January 19, 1998 was
    7,571,381.

                      Documents Incorporated by Reference

    The  following are the documents incorporated  by  reference and the part
    of the Form 10-K into which the  document  is incorporated:

         Document:                                   Part of Form 10-K

    Proxy Statement for Annual Meeting
    of  Shareholders on February 27, 1998            Part  III




                                     PART I


    Item 1.  BUSINESS

    General Development of Business

    Collins Industries, Inc. was founded in 1971 as a manufacturer of small
    school buses and ambulances built from modified cargo vans.  The
    Company's initial product was the first "Type A" school bus, designed to
    carry 16 to 20 passengers.  Today the Company manufacturers specialty
    vehicles and accessories for various basic service niches of the
    transportation industry.  The Company's products include ambulances,
    small school buses, shuttle and mid-size commercial buses, terminal
    trucks, and commercial bus chassis.  From its inception, Collins' stated
    goal has been to become the largest manufacturer of specialty vehicles in
    the U.S.  The Company has grown primarily through the internal
    development of new products and the acquisition of complementary product
    lines.


    In the U.S., Collins is the largest manufacturer of ambulances, the
    second largest manufacturer of terminal trucks and a leading manufacturer
    of small school buses, shuttle and mid-size commercial buses and
    commercial bus chassis.  The Company sells its products under several well-
    known trade names, including Wheeled Coach (ambulances), Collins Bus
    (small school buses), World Trans (commercial buses), and Capacity
    (terminal trucks).

    Most Collins products are built to customer specifications from a wide
    range of options offered by the Company. Collins sells to niche markets
    which demand manufacturing processes too sophisticated for small job shop
    assemblers, but is not the highly automated assembly line operations of
    mass production vehicle manufacturers.  The Company emphasizes specialty
    engineering and product innovation.  In the last few years, it has
    introduced new products and product improvements, which include the
    Moduvan ambulance, the first ambulance of its size with advanced
    life-support system capability, the Dura-Ride suspension system, the
    first frame-isolating suspension system for terminal trucks, and the
    innovation of a larger seating capacity, Type A Super Bantam school bus
    capable of carrying up to 24 passengers, the largest Type A in the
    industry.

    Description of Business

    The Company principally manufactures and markets Specialty Vehicles.

    Ambulances.   The Company manufactures both modular and van-type
    ambulances at its Hutchinson, Kansas and Orlando, Florida plants.
    Modular ambulances are produced by attaching an all-aluminum, box-type,
    patient compartment to either a dual rear-wheel cab chassis ("Type I")
    ambulance or a dual rear-wheel, van-type, cutaway chassis ("Type III")
    ambulance or to a single rear-wheel cutaway chassis ("Moduvan") ambulance.
    A cutaway chassis consists of only the front portion of the driver's
    compartment, engine, drive train, frame, axle and wheels.  Van ("Type
    II") ambulances are cargo vans modified to include a patient compartment
    and a raised fiberglass roof.  Type II ambulances are smaller and less
    expensive than modular ambulances.

    The Company also produces a limited number of medical support vans
    designed to transport medical and life-support equipment.  Medical
    support vans are modified commercial vehicles which do not have a patient
    compartment for advanced life support systems.
 
    Buses.  The Company manufacturers small school buses, commercial and
    shuttle buses at its Hutchinson and South Hutchinson, Kansas facilities.

    School Buses.   The Company manufacturers small Type A school buses which
    carry from 16 to 24 passengers.  The Company built Type A school buses by
    extensively modifying vendor-supplied cargo vans.  The majority of Type A
    school buses built by the Company are now produced by fabricating the
    body and mounting it on a vendor-supplied, dual rear-wheel or single
    rear-wheel, cutaway chassis.  The Company was the first manufacturer to
    produce a Type A school bus on this type of chassis, which permits
    greater seating capacity than a van chassis.  School buses are produced
    in compliance with Federal, state and local laws regarding school
    transportation vehicles.

    Commercial and Shuttle Buses.  The Company produces shuttle and transit
    buses for car rental agencies, transit authorities, hotels and resorts,
    retirement centers, nursing homes and similar users.  These buses are
    built to customer specifications and are designed to transport 14 to 30
    passengers over short distances.

    Collins offers commercial bus products in various price ranges.  The
    Diplomat is a steel body bus built on a vendor-supplied, cutaway chassis
    that carries 17 to 25 passengers and targets a low-to mid-price range
    market.  The World Trans 3000, introduced in early 1993, is an aluminum
    body bus built on the Company's rear-engine, rail-type chassis. This
    product is designed for the medium duty segment of the transit and
    shuttle markets.

    Terminal Trucks.  The Company produces two basic models of terminal trucks
    at its Longview, Texas facility, the Trailer Jockey and the Yardmaster.
    Terminal trucks are designed and built to withstand heavy-duty use by
    moving trailers and containers at warehouses, rail yards, rail terminals
    and shipping ports.  Most terminal trucks manufactured by the Company are
    built to customer specifications.  The Company manufactures the entire
    truck except for major drivetrain components which are purchased from
    outside suppliers.  The Dura-Ride suspension system, an increasingly
    popular option on the Company's terminal trucks, was installed on over
    half of the terminal trucks built by the Company during fiscal 1997.

    Bus Chassis.  The Company produces a rear-engine bus chassis for use by
    the Company and for sale to other manufacturers.  This chassis is
    suitable for both commercial and large school buses.  To date, the
    Company has produced and sold limited quantities of these chassis.  The
    Company plans to continue manufacturing bus chassis suitable for its own
    products and for sale to other manufacturers.
  

    Manufacturing

    Manufacturing  consists of the assembly of component parts either
    purchased from others or fabricated internally.  With the exception of
    chassis, chassis components and certain terminal truck components which
    are purchased from outside suppliers, the Company fabricates the principal
    components of its products.  Collins' internal capabilities include CNC
    punching and forming of sheet metal, metal stamping, tooling, molding of
    fiberglass components, mechanical and electrical component assembly,
    upholstry, painting and finishing and Computer-Aided-Design and 
    Manufacturing (CAD/CAM) systems.


    Collins intends to continue to improve its manufacturing facilities from
    time-to-time through the selective upgrading of equipment and the
    mechanization or automation of appropriate portions of the manufacturing
    process.  Management believes the Company's manufacturing facilities are
    in good condition and are adequate for the purposes for which they 
    currently are used.  The capacity of the Company's current facilites,
    particularly if operated on a multiple shift basis, is considered
    adequate to meet current needs and anticipated sales volumes.


    New Products

    The Company is not presently engaged in activities which would require
    a significant amount of expenditures or use of material amounts of assets
    for development of products in the planning stage or otherwise for the
    foreseeable future.

    Suppliers

    In order to ensure that it has a readily available supply of chassis for
    ambulance and bus production, the Company has entered into consignment
    agreements with General Motors Corporation ("GMC") and Ford Motor
    Company ("Ford").  Under those agreements, chassis are kept at Company
    production facilities at no cost to the Company other than chassis 
    storage costs.  When an individual chassis is selected from the Company's
    consignment pool for use in vehicle production, title to the chassis
    passes to the Company and the Company becomes liable to the consignor for
    the cost of the chassis.  Chassis currently in the consignment pool are
    supplied by Ford and GMC.  While an interruption in supply from one
    source may cause a temporary slowdown in production, the Company believes
    that it could obtain adequate numbers of chassis from alternate sources of
    supply.

    The Company uses substantial amounts of steel in the production of its
    terminal truck products and purchases certain other major components
    (primarily engines, transmissions and axles).  Collins also uses large
    amounts of aluminum, steel, fiberglass and glass in the production of
    ambulances and buses.  There is substantial competition among suppliers
    of such raw materials and components, and the Company does not believe
    that a loss of a single source of supply would have a material adverse
    effect on its business.  

    Patents, Trademarks and Licenses

    The Company owns federal registrations for most of the trademarks which it
    uses on its products.  The Company also owns patents on its bus body
    design, ambulance design, Dura-Ride air suspension system, ambulance
    warning light system and air-activated bus door.  The Company believes
    that its patents are helpful, because they may force competitors to do
    more extensive design work to produce a competitive product.  The
    Company believes that its production techniques and skills are as
    important as product design, and, therefore, in management's opinion, any
    lack of patent protection would not adversely affect the Company's
    business.

    Seasonality of Business

    Historically a major portion of the Company's net income has been earned
    in the second and third fiscal quarters ending April 30 and July 31,
    respectively.  The purchasing patterns of school districts are typically
    strongest in the spring and summer months which accounts for typically
    stronger sales of small school buses in the quarters ending April 30
    and July 31.  Generally, the Company's sales tend to be lower in the fall
    and winter months due to the purchasing patterns of the Company's
    customers in general and purchasing activities are normally lower near
    the end of the calendar year.

    Sales Terms

    The Company produces the majority of its products on an order-only basis.
    Most products are delivered on a cash basis.  Products sold on a direct
    basis (not through dealers) are sold on trade terms common to the
    respective industry.  Finished goods that are reflected on the financial
    statements are generally sold units that are ready for customer delivery.
    Sales to dealers have generally been financed through an unrelated third
    party for the dealers, resulting in payment generally within days of the
    sale.

    Customer Concentration

    The Company has no single customer whose loss would have a material
    adverse effect on the company as a whole.

    Sales Backlog

    The sales backlog at October 31, 1997 was approximately $45.5 million. 
    This compares to $40.4 million at October 31, 1996.  In the opinion of
    management, the majority of this sales backlog will be shipped during the
    coming fiscal year.

    Governmental Sales

    The Company has, and will continue to, pursue opportunities in government
    sales as they occur.  No material portion of the Company's business,
    however, is subject to renegotiation of profits or termination of
    contracts or subcontracts at the election of the government.

    Marketing and Distribution

    The Company, through its wholly owned subsidiaries, markets its products
    throughout the U.S. and, to a limited extent, abroad through independent
    dealers and distributors, Company-owned stores and the direct sales
    efforts of Company personnel.  Each of the Company's product groups is
    responsible for its own marketing activities and maintains independent
    relationships with dealers and distributors.  Support is provided to
    dealers and distributors in bidding specification writing and customer
    service.

    The Company regularly advertises in consumer and trade magazines and
    other print media and actively participates in national, regional and
    local trade shows.  In addition, company representatives attend a number
    of national conventions and regional meetings of important constituent
    groups such as school boards and emergency medical groups.

    Competition

    The markets for most of the Company's product lines are very competitive,
    and the Company currently has several direct competitors in most markets.
    Some of these competitors may have greater relative resources.  The
    Company believes it can compete successfully (i) in the ambulance market
    on the basis of the quality and price of its products, its design 
    engineering and product innovation capabilities and the strength of the
    Wheeled Coach brand name, (ii) in the small school bus market on the
    basis of its product price and quality and favorable recognition of its
    Collins Bus brand name and (iii) in the commercial bus market on the
    basis of its various product models, product quality, price and 
    distribution network.

    In the terminal truck market, the Company competes primarily with one
    larger domestic competitor, Ottawa Truck Corporation which is owned by
    Sisu of Finland.  Sisu has international distribution channels and is 
    owned by the government of Finland and may have greater relative 
    resources than the Company.  The Company believes it can compete
    successfully in this market on the basis of its Capacity brand name,
    price, product quality and customer demand for its exclusive Dura-Ride
    suspension system.

    Research and Development Costs

    Research and Development Expenses       1997       1996      1995
                                           $162,002  $215,313  $261,747

    This table cites the level of research and development costs the Company
    incurred the past three fiscal years.  It should be noted the Company
    does significant research and development work on the production line
    and, therefore, the major costs of new programs are recorded as cost of
    sales and are expensed as prototypes.

    Regulations

    The Company is subject to various laws and regulations with respect to
    employees' health and safety and the protection of the environment.  In
    addition, all of the Company's on-road vehicles must satisfy certain
    standards applicable to such vehicles as established by the United States
    Department of Transportation.  Certain of its products must also satisfy
    specifications established by other federal, state and local regulatory
    agencies, primarily dealing with safety and performance standards.  In
    management's opinion, the Company and its products are in compliance in
    all material respects with all applicable governmental regulations.  A
    substantial change in any such regulations could have a significant
    impact on the business of the Company.

    Employees

    The Company employs approximately 900 persons full time, including
    officers and administrative personnel.  The Company has not experienced
    any strikes or work stoppages due to labor problems and considers its
    relations with its employees to be satisfactory.

    Export Sales

    The Company has no significant foreign or export sales.




    Item 2.  PROPERTIES

    The following table sets forth certain information with respect to the
    Company's manufacturing and office facilities.  The Company owns all
    properties listed below in fee simple, except as otherwise noted.

                                                                 Approximate
    Location                           Use                       Size (sq ft)   

    Hutchinson, Kansas (1)             Corporate Headquarters          4,000

    Hutchinson, Kansas (1),(2)         Ambulance production;         300,000
                                       Commercial Buses; 
                                       Wheelchair lifts and
                                       accessories production;
                                       Office space

    Hutchinson, Kansas (1)             Building presently leased      60,000
                                       and available for future
                                       production

    South Hutchinson, Kansas (1), (3)  Small school bus and          160,000
                                       commercial bus production;
                                       Office space

    Orlando, Florida (1)               Ambulance production;         229,000
                                       Office space

    Longview, Texas (1)                Terminal truck production;    120,000
                                       Chassis production;
                                       Office space

    Mansfield, Texas (1)               Ambulance sales, service       25,000
                                       and distribution center


    (1)  This property is pledged as collateral to secure payment of the
         Company's debt obligations.  See "Notes 2 and 3 to Consolidated
         Financial Statements."

    (2)  Approximately 80 percent of this facility, together with related
         machinery and equipment, is financed by industrial revenue bonds
         in the original principal amount of $3,500,000 issued by the City
         of Hutchinson under a lease purchase agreement providing for 
         rental payments sufficient to amortize the bonds in accordance 
         with their terms.

    (3)  This facility and certain related equipment are financed by
         industrial revenue bonds in the original principal amount of
         $1,750,000 issued by the City of South Hutchinson under a lease
         purchase agreement similar to the one in effect for the Hutchinson 
         production facility.

    The Company leases several facilities throughout the U.S. for the sale
    and distribution of ambulances.  Although the Company evaluates
    opportunities to acquire additional properties at favorable prices as they
    arise, it believes that its facilities are well maintained and will be
    adequate to serve its needs in the foreseeable future.  Several Company
    facilities have room to expand in existing buildings and others have land
    upon which additional buildings can be constructed.

    Item 3.  LEGAL PROCEEDINGS

    There are no material pending legal proceedings, other than ordinary
    routine litigation incidental to the business, to which the Company
    is a party or of which any of its property is subject.

    Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

    The Company did not submit any matter to a vote of security holders
    during the fourth quarter of the fiscal year ended October 31, 1997.



                                  PART II

    Item 5.  MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED
             STOCKHOLDER MATTERS

    Collins Industries, Inc. common stock is quoted on the Nasdaq Stock
    Market under the symbol COLL.  The following table sets forth the high
    and low sales prices per share of the common stock as reported by the
    Nasdaq Stock Market.  On October 31, 1997 there were approximately
    650 shareholders of record of the Company's common stock.


                                 FISCAL 1997

           Quarter            High            Low           Volume
                                                            (000s)
           First              6              4-1/2           1,261
           Second             5-1/4          4                 547
           Third              8-1/4          4-1/4           1,660
           Fourth             8-7/8          6-1/2             997


                                 FISCAL 1996

           Quarter            High           Low            Volume
                                                            (000s)
           First              2-1/4          1-7/16          1,049
           Second             3-7/8          1-9/16          2,561
           Third              6              3-7/16          2,954
           Fourth             6-1/2          4-7/16          1,392

    During the period covered by this Report, the Company did not sell any
    equity securities that were not registered under the Securities Act.    



   Item 6.  SELECTED FINANCIAL DATA

   Operating History

  (In thousands except share and per-share data)

   Fiscal years ended              1997     1996     1995     1994      1993
   October 31,

   Sales                        $157,522 $151,879 $140,725 $143,763   $146,992
   Cost of sales                 131,920  129,652  123,911  126,664    137,436
   Gross profit                   25,602   22,227   16,814   17,099      9,556
   Selling, general and
    administrative (including
    research & development)       15,379   15,236   13,925   13,661     14,992
   Income (loss) from operations  10,223    6,991    2,889    3,438     (5,436)
   Other income (expenses):
    Interest, net                 (1,642)  (2,241)  (2,783)  (3,410)    (3,311) 
    Other, net (Note A)              262      262      (27)    (999)    (3,220)
  Income (loss) from continuing
   operations before provision
   (benefit) for income taxes and
   extraordinary items             8,843    5,012       79     (971)   (11,967)
  Provision (benefit) for
   income taxes                    1,600        0        0        0       (749)
  Income (loss) before
   extraordinary items             7,243    5,012       79     (971)   (11,218)
  Extraordinary items                  0        0     (420)       0          0
  Net income (loss)             $  7,243 $  5,012  $  (341) $  (971) $ (11,218)
  Earnings (loss) per share:
   Continuing operations        $    .93 $    .66  $   .01  $  (.14) $  (1.59)
   Extraordinary items                 0        0     (.06)       0         0
   Net income (loss)                 .93      .66     (.05)    (.14)    (1.59)
  Dividends per share           $   .075 $      0  $     0  $     0  $  .0625
  Weighted average shares
   outstanding                 7,806,373 7,621,403 7,240,926 7,106,082 7,071,097
  Non-cash charges              $  1,782 $  2,128  $ 3,040  $ 2,889  $  3,117

  Note A:  Includes non-recurring expenses of $1,010,761 and $3,115,531 in 
           1994 and 1993, respectively, associated with the restatement of
           the October 31, 1992 consolidated financial statements.



   Financial Position
   (In thousands except share and per-share data)


   Fiscal years ended          1997       1996      1995      1994      1993
   October 31, 

   Current assets             $34,002   $32,640   $32,086   $37,733   $40,651
   Current liabilities         18,959    18,436    18,670    23,769    25,376
   Working capital             15,043    14,204    13,416    13,964    15,275
   Total assets                47,163    45,744    46,881    54,794    59,309
   Long-term debt and
    capitalized leases
    (less current maturities)   8,362    13,418    19,406    20,544    22,622
   Shareholders' investment    19,842    13,891     8,805     8,994     9,811
   Book value per share          2.69      1.91      1.21      1.26      1.38


   Financial Comparisons

   Gross profit margin          16.3%     14.6%     11.9%     11.9%      6.5%
   Net profit margin             4.6%      3.3%        NA        NA        NA
   Selling, general and
    administrative (including
    R&D) as percent of sales     9.8%     10.0%      9.9%      9.5%     10.2%
   Current ratio                1.8:1     1.8:1     1.7:1     1.6:1     1.6:1
   Long-term debt and
    capitalized leases to
    shareholders' investment    0.4:1     1.0:1     2.2:1     2.3:1     2.3:1
   Manufacturing space
    (000s square feet)             898       898       978       978       978


    Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
             CONDITION AND RESULTS OF OPERATIONS

    The following discussion and analysis provides information which
    management believes is relevant to an assessment and understanding of the
    Company's consolidated results of operations and financial condition. The
    discussion should be read in conjunction with the consolidated financial
    statements and notes thereto.

    Results of Operations

    Fiscal 1997 Compared to Fiscal 1996.  Sales for fiscal 1997 increased
    to $157.5 million compared to $151.9 million.  The sales increase for 
    fiscal 1997 was principally due to improved sales of terminal truck 
    products.  The sales increase of terminal trucks was principally due to
    a sales contract with U.S. Postal Service.

    At October 31,1997 the Company's consolidated sales backlog was $45.5
    million compared to $40.4 million at October 31, 1996.  The Company 
    believes a majority of its consolidated sales backlog will be shipped 
    in fiscal 1998.

    Cost of sales for fiscal 1997 was 83.7% of sales compared to 85.4% of
    sales in fiscal 1996.  The principal reasons for this improvement
    include: the $1.2 million gain from the sale of the Company's UVL
    product line which was recorded as a reduction of cost of sales and 
    lower material costs associated with an improved sales mix in ambulance 
    products.

    Selling, general and administrative expenses for fiscal 1997 were 
    $15.2 million or 9.6% of sales compared to $15.0 million or 9.9% of
    sales in fiscal 1996.  The overall dollar increase was principally due 
    to higher marketing and selling expenses associated with new sales 
    personnel and the addition of a corporate telemarketing center.

    Interest expense for fiscal 1997 decreased $.6 million over fiscal 1996.
    This decrease was principally due to reduced average borrowings during 
    fiscal 1997.  The Company's base interest rate with its lead Bank will
    decrease in fiscal 1998 by 1/2% (to prime + 1/2%) due to the Company's
    meeting certain financial thresholds at October 31, 1997.

    Income tax expense in fiscal 1997 was $1.6 million.  Income tax expense
    as a percentage of pretax income was 18% in fiscal 1997 and was less
    than the Federal statutory rate principally due to the utilization of 
    net operating loss carryforwards and general business tax credits. 
    There was no provision for income taxes in fiscal 1996 due to the
    Company's utilization of its net operating loss carryforwards from
    prior years.

    The Company's income before extraordinary items in fiscal 1997 increased
    to $7.2 million ($.93 per share) compared to $5.0 million ($.66 per
    share) in fiscal 1996.  This increase was principally a result of profit
    improvements from ambulance and terminal truck products, the gain from 
    the sale of the UVL product line and lower interest costs associated with
    an overall reduction in interest-bearing debt.  These increases were
    partially offset by income taxes of $1.6 million in fiscal 1997.

    Fiscal 1996 Compared to Fiscal 1995.  Sales for fiscal 1996 increased
    8% to $151.9 million compared to $140.7 million in fiscal 1995.  The
    sales increase for fiscal 1996 was principally due to improved sales
    of buses and ambulances.  Sales related to school bus products increased
    in fiscal 1996, principally due to improved sales of units carrying
    higher sales prices.

    Cost of sales for fiscal 1996 was 85.4% of sales compared to 88.1% of
    sales in fiscal 1995.  The principal reasons for this improvement
    include:  lower material costs associated with the Company's consolid-
    ation of certain purchasing operations; improved efficiencies in the
    operations of the bus product lines and change in sales mix in
    ambulance products to higher margin units.

     Selling, general and administrative expenses for fiscal 1996 were $15.0
     million or 9.9% of sales compared to $13.7 million or 9.7% of sales
     in fiscal 1995.  The overall dollar increase was principally higher
     selling expenses and incentive payments and the impact of an unfavorable
     jury verdict of certain litigation.

    Interest expense for fiscal 1996 decreased $.5 million over fiscal 1995.
    This decrease was principally due to reduced average borrowings during 
    fiscal 1996.

    There was no provision for income taxes in fiscal 1996 due to the
    Company's utilization of its net operating loss carryforwards from prior
    years.

    The Company's income before extraordinary items in fiscal 1996 was
    $5.0 million ($.66 per share) compared to $.1 million ($.01 per share)
    in fiscal 1995.  Income before extraordinary items increased in fiscal
    1996 principally as a result of improved sales of ambulance and bus
    products, lower material costs gained through the consolidation of 
    certain purchasing operations and lower interest costs associated with 
    an overall reduction of interest-bearing debt.

    In fiscal 1995, the Company incurred extraordinary net charges of
    $.4 million associated with the early retirement of certain debt.  No
    extraordinary expenses were incurred in fiscal 1996.

    Liquidity and Capital Resources

    Historically, the Company has principally relied on internally generated
    funds, supplier financing and bank borrowings to finance its operations 
    and capital expenditures.  The Company's working capital requirements
    vary from period to period depending on the production volume, the timing
    of vehicle deliveries and the payment terms offered to its customers.

    Cash provided by operations was $8.1 million in fiscal 1997 compared to
    $5.8 million in fiscal 1996.  Primary sources of the 1997 cash provided
    by operations related to the Company's improved profit levels and
    reductions in accounts receivable.  The sources of cash from operations
    were partially offset by increased income taxes paid ($1.6 million) and
    increases in inventories ($2.1 million) and a prepaid expense
    ($.9 million).

    Cash provided by operations was $5.8 million in fiscal 1996 compared to 
    $5.3 million in fiscal 1995.  Primary sources of the 1996 cash provided 
    by operations related to the Company's improved profit levels.  The 
    sources of cash from operations were partially offset by increases in
    receivables and a reduction in accounts payable.

    Cash provided by operations was $5.3 million in fiscal 1995.  Primary 
    sources of the 1995 cash provided by operations related to the profitable
    operations of the ambulance and terminal truck product lines and to
    reductions in receivables, inventories and prepaid expenses.

    Cash used in investing activities was $1.8 million in fiscal 1997 
    compared to $.3 million in fiscal 1996.  In fiscal 1997 the principal
    use of cash for investing activities related to the acquisition of
    property and equipment.  In fiscal 1996 the principal use of cash for
    investing activities was for the acquisition of property and equipment
    ($.8 million) and certain other assets ($.2 million).  In fiscal 1995
    the principal use of cash for investing activities was for the 
    acquisition of property and equipment ($.6 million) and certain other
    assets ($.3 million).  (In fiscal 1996 and 1995  these uses of cash were
    partially offset by the proceeds from the sale of vacant land
    ($.6 million).)

    Cash used in financing activities was $6.4 million in fiscal 1997
    compared to $6.0 million in fiscal 1996.  In fiscal 1997 the Company 
    used cash to reduce its long-term borrowings by $5.1 million, to
    purchase and retire common stock of $.8 million and to pay cash 
    dividends totalling $.6 million.  Cash used in financing activities was
    $6.0 million in fiscal 1996 compared to $8.0 million in fiscal 1995.  In
    fiscal 1996, the Company reduced its net long-term borrowings $6.0
    million compared to a net reduction of $3.7 million in fiscal 1995.  
    The Company obtained  a $33.05 million credit facility from NationsBank
    in 1995. The proceeds of that financing were used to repay the Company's
    chassis floorplan notes (short-term) and to pay off Guaranteed Senior
    Notes of $17.5 million.  Additionally, the Company reduced short-term
    borrowings by $4.3 million in fiscal 1995.

    The Company believes that its cash flows from operations and its credit 
    facility with NationsBank will be sufficient to satisfy its future
    working capital, capital expenditure requirements and anticipated
    dividends.

    At October 31, 1997 there were no significant or unusual contractual 
    commitments or capital expenditure commitments. However, subsequent to
    October 31, 1997 the Company entered into a capitalized lease agreement
    with the City of South Hutchinson, Kansas for the issuance of $3.5
    million of 1997 Industrial Revenue Bonds.  The net proceeds will be used 
    to construct and equip an addition to the Company's bus manufacturing
    facilities.

    Statement of Financial Accounting Standards (SFAS) No. 121, "Accounting 
    for the Impairment of Long-Lived Assets and for Long-Lived Assets to be
    Disposed of" and Statement of Financial Accounting Standards (SFAS)
    No. 123 "Accounting for Stock-Based Compensation" were effective for the
    Company's 1997 fiscal year.  The adoption of SFAS No. 121 and No. 123
    did not have a material effect on the Company's financial position or
    results of operations.

    Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings
    per Share" is effective for the Company's 1998 fiscal year and the 
    Company has disclosed pro forma earnings per share amounts under
    SFAS No. 128 for fiscal 1997, 1996 and 1995 in Note 1 to the Company's
    consolidated financial statements.

    Statement of Financial Accounting Standards (SFAS) No. 130, "Reporting
    Comprehensive Income" and Statement of Financial Accounting Standards 
    (SFAS) No. 131, "Disclosure about Segments of an Enterprise and Related 
    Information" are effective for the CompanyOs 1999 fiscal year and are
    not expected to have a material effect on the Company's financial
    position or results of operations.


    IMPACT OF INFLATION AND FOREIGN CURRENCY EXCHANGE FLUCTUATIONS

    The results of the Company's operations for the periods discussed have
    not been significantly affected by inflation or foreign currency 
    fluctuations.  Facility costs result primarily from interest and
    principal and are not affected by inflation.  Further, although the
    Company often sells products on a fixed quote basis, the average time 
    between the receipt of an order and delivery is typically a few
    months.  Therefore, the Company generally is not adversely affected by
    increases in the cost of raw materials and components.  This could
    change in situations in which the Company is producing against a 
    substantial backlog and may not be able to pass on higher costs to
    customers.  In addition, interest on the Company's debt is tied to the
    prime rate and therefore may increase with inflation.

    Collins makes substantially all sales to foreign customers in U.S.
    dollars.  Thus, notwithstanding fluctuation of foreign currency
    exchange rates, the Company's profit margin for any purchase order is
    not subject to change due to exchange rate fluctuations after the time
    the order is placed.

    YEAR 2000

    The Company currently uses MAPICS software on an IBM AS400 platform.  The
    IBM operating system is year 2000 compatible.  The MAPICS software will 
    require an upgrade to make it year 2000 compliant, which the Company
    intends to complete prior to December 31, 1998.  The Company does not
    believe there will be any additional cost associated with the software
    upgrade and additional implementation and training costs will not be 
    material to the Company's financial position or results of operations.

    ITEM 8.  Financial Statements and Supplementary Data

    Collins Industries, Inc. and Subsidiaries
    CONSOLIDATED STATEMENTS OF INCOME
    For the years ended October 31,


                                         1997         1996          1995

    Sales                            $157,522,016  $151,878,862  $140,725,065
    Cost of sales (Note 1)            131,919,939   129,651,654   123,910,694
        Gross profit                   25,602,077    22,227,208    16,814,371

    Selling, general and
     administrative expenses           15,216,609    15,020,673    13,663,037
    Research and development expenses     162,002       215,313       261,747

        Income from operations         10,223,466     6,991,222     2,889,587


    Other income (expense):
     Interest, net                     (1,642,573)   (2,241,575)   (2,783,198)
     Other, net                           262,323       262,420       (26,704)
                                       (1,380,250)   (1,979,155)   (2,809,902)
        Income before provision for
          income taxes and
          extraordinary items           8,843,216     5,012,067        79,685

    Provision for income taxes (Note 3) 1,600,000             0             0

        Income before extraordinary
          items                         7,243,216     5,012,067        79,685

    Extraordinary items -
      Early retirement of debt (Note 2)         0             0      (420,444)

        Net income (loss)            $  7,243,216  $  5,012,067   $  (340,759)


    Earnings (loss) per share (Note 1):
      Before extraordinary itmes     $        .93  $       .66   $        .01
      Extraordinary itmes                       0            0           (.06)
      Net income (loss)              $        .93  $       .66   $       (.05)


    Dividends per share              $       .075  $         0   $          0

         The accompanying notes are an integral part of these statements.




    Collins Industries, Inc. and Subsidiaries
    CONSOLIDATED BALANCE SHEETS
    October 31,
    
               ASSETS                                1997          1996
    Current assets:
      Cash (Note 1)                             $    189,152   $     255,405
      Receivables, less allowance for
       doubtful accounts of $39,000 in
       1997 and $98,000 in 1996 (Note 2)           6,745,973       8,310,009
      Inventories (Notes 1 & 2)                   25,686,022      23,615,159
      Prepaid expenses and other current assets    1,380,998         459,275
          Total current assets                    34,002,145      32,639,848

    Property and equipment, at cost (Notes 1 & 2)
      Land and improvements                        2,341,943       2,332,717
      Buildings and improvements                  15,072,087      14,879,948
      Machinery and equipment                     11,817,691      14,661,124
      Office furniture and fixtures                3,000,769       2,736,581
                                                  32,232,490      34,610,370
      Less - accumulated depreciation             19,800,671      22,573,220
                                                  12,431,819      12,037,150
    Other assets                                     729,166       1,067,454
                                                $ 47,163,130    $ 45,744,452


           LIABILITIES & SHAREHOLDERS' INVESTMENT
    Current liabilities:
      Current maturities of long-term debt and
       capitalized leases (Note 2)              $  1,094,948    $  1,125,842
      Accounts payable                            14,200,975      13,729,044
      Accrued expenses                             3,663,382       3,580,731
          Total current liabilities               18,959,305      18,435,617

    Long-term debt and
     capitalized leases (Note 2)                   8,361,887      13,418,010

    Commitments and contingencies (Note 6)

    Shareholders' investment (Notes 2, 4, & 5)
     Preferred stock, $.10 par value
       Authorized - 750,000 shares
       Outstanding - No shares outstanding
     Common stock, $.10 par value
       Authorized - 17,000,000 shares
       Issued - 7,385,681 shares in 1997;
                7,274,110 in 1996                   738,568          727,411
     Capital stock, $.10 par value
       Authorized - 3,000,000 shares
       Outstanding - No shares outstanding
     Paid-in capital                             18,918,903       19,701,491
     Retained earnings (deficit)                    184,467       (6,505,077)
                                                 19,841,938       13,923,825
     Less -Treasury stock, 6,000 shares,
      at cost in 1996                                     0          (33,000)
          Total shareholders' investment         19,841,938       13,890,825
                                               $ 47,163,130     $ 45,744,452


      The accompanying notes are an integral part of these balance sheets.



    Collins Industries, Inc. and Subsidiaries
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    For the years ended October 31,

                                           1997         1996          1995
    Cash flow from operations:
      Cash received from customers    $159,086,052  $150,944,345  $141,425,892
      Cash paid to suppliers and
       employees                      (147,534,561) (142,919,078) (132,956,101)
      Interest paid, net                (1,759,087)   (2,265,324)   (3,209,818)
      Income taxes paid                 (1,650,700)            0             0
         Cash provided by operations     8,141,704     5,759,943     5,259,973

    Cash flow from investing activities:
      Capital expenditures              (1,731,543)     (862,889)     (551,528)
      Sale of property and equipment        16,500       668,038       643,667
      Expenditures for other assets        (97,995)     (176,305)     (237,519)
      Other, net                                 0        57,863       (57,034)
         Cash used in investing
          activities                    (1,813,038)     (313,293)     (202,414)

    Cash flow from financing activities:
      Net reduction in short-term 
       borrowings                                0             0    (4,301,111)
      Principal payments of long-term
       debt and capitalized leases      (5,087,017)   (6,019,948)  (19,783,293)
      Addition to long-term debt                 0             0    16,055,400
      Purchase of common stock and
       other capital transactions         (754,230)      (14,250)            0
      Payment of dividends                (553,672)            0             0
         Cash used in financing 
          activities                    (6,394,919)   (6,034,198)   (8,029,004)

    Net decrease in cash                   (66,253)     (587,548)   (2,971,445)
    Cash at beginning of year              255,405       842,953     3,814,398

    Cash at end of year               $    189,152  $    255,405  $    842,953

    Reconciliation of net income (loss) 
     to net cash provided by operations:
       Net income (loss)              $  7,243,216  $  5,012,067  $   (340,759)
       Depreciation and amortization     1,781,740     2,019,938     2,513,541
       Common stock issued for benefit
         of employees                            0       108,170       106,365
       Decrease (increase) in
        receivables, net                 1,564,036      (934,517)      700,827
       Decrease (increase) in
        inventories                     (2,070,863)     (148,432)    1,614,442
       Decrease (increase) in
        prepaid expenses                  (921,723)      (58,522)      329,517
       Increase (decrease) in
        accounts payable                   471,931      (425,847)      276,782
       Increase (decrease) in
        accrued expenses                    82,651       223,521      (261,519)
       Gain on sale of property 
        and equipment                       (9,284)      (36,435)      (99,667)
       Loss on early extinguishment 
        of debt                                  0             0       420,444
          Cash provided by operations $  8,141,704  $  5,759,943  $  5,259,973

           The accompanying notes are an integral part of these statements.



    Collins Industries, Inc. and Subsidiaries
    CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT
    For the years ended October 31,


                                              Common Stock          Paid-In
                                            Shares      Amount      Capital
    Balance October 31, 1994               7,137,348    713,735    19,457,056
     
    Stock issued under various
     discretionary arrangements (Note 4)     110,000     11,000         9,000
    Stock issued to Tax Deferred
     Savings Plan and Trust (Note 5)          39,539      3,954        82,410
    Amortization of deferred
     compensation                                  0          0        45,139
    Net loss                                       0          0             0

    Balance October 31, 1995               7,286,887    728,689    19,593,605

    Stock issued (rescinded)
     under various discretionary
     arrangements (Note 4)                   (54,500)    (5,450)       18,451
    Stock issued to Tax Deferred
     Savings Plan and Trust (Note 5)          31,723      3,172        71,685
    Stock issued under Stock
     Option Plans (Note 4)                    10,000      1,000        17,750
    Net income                                     0          0             0
    Purchase of treasury stock                     0          0             0

    Balance October 31, 1996               7,274,110    727,411    19,701,491

    Stock issued under Stock
     Option Plans (Note 4)                   275,196     27,520      (86,097)
    Amortization of deferred
     compensation                                  0          0       15,799
    Net income                                     0          0            0
    Cash dividends paid                            0          0            0
    Purchase of treasury stock                     0          0            0
    Retirement of treasury stock            (163,625)   (16,363)    (934,825)
    Tax benefit from exercise of
     stock options                                 0          0      222,535

    Balance October 31,1997                7,385,681   $738,568  $18,918,903 


    Collins Industries, Inc. and Subsidiaries
    CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT (CON'T.)
    For the years ended October 31,

                                           Retained
                                           Earnings         Treasury Stock
                                           (Deficit)       Shares    Amount 
    Balance at October 31, 1994          (11,176,385)           0          0

    Stock issued under various
     discretionary arranements (Note 4)            0            0          0
    Stock issued to Tax Deferred
     Savings Plan and Trust (Note 5)               0            0          0
    Amortization of deferred
     compensation                                  0            0          0
    Net loss                                (340,759)           0          0

    Balance October 31, 1995             (11,517,144)           0          0

    Stock issued (rescinded)
     under various discretionary
     arrangements (Note 4)                         0            0          0
    Stock issued to Tax Deferred
     Savings Plan and Trust (Note 5)               0            0          0
    Stock issued under Stock
     Option Plans (Note 4)                         0            0          0
    Net income                             5,012,067            0          0
    Purchase of treasury stock                     0        6,000    (33,000) 

    Balance October 31, 1996              (6,505,077)       6,000    (33,000)

    Stock issued under Stock
     Option Plans (Note 4)                         0            0          0
    Amortization of deferred
     compensation                                  0            0          0
    Net income                             7,243,216            0          0
    Cash dividends paid                     (553,672)           0          0
    Purchase of treasury stock                     0      157,625   (918,188) 
    Retirement of treasury stock                   0     (163,625)   951,188
    Tax benefit from exercise of
     stock options                                 0            0          0

    Balance October 31, 1997             $   184,467            0   $      0

         The accompanying notes are an integral part of these statements.



    Collins Industries, Inc. and Subsidiaries
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    For the three years ended October 31, 1997

    (1)  Summary of Significant Accounting Policies

    (a)  Consolidation and Operations - The consolidated financial statements
         include the accounts of Collins Industries, Inc. (the Company) and
         its wholly owned subsidiaries.  All significant intercompany accounts
         and transactions have been eliminated in consolidation

    The Company primarily operates in the Specialty Vehicle Manufacturing
    segment and related vehicle accessories.  Manufacturing activies are
    carried on solely in the United States.  However, the Company does market
    its products in other countries.  Revenues derived from export sales to
    unaffiliated customers were less than 10% of consolidated sales in fiscal
    1997, 1996 and 1995.

    (b)  Cash and cash management - Cash includes checking accounts and funds
    invested in overnight and other short-term, interest-bearing accounts.

    The Company maintains controlled disbursement accounts with its lead bank
    under an arrangement whereby all cash receipts and checks are centralized
    and presented to the bank daily.  All deposits are applied directly
    against the Company's revolving credit line and all checks presented for
    payment in the controlled disbursement accounts are funded through borrow-
    ings under the Company's revolving credit facility.  At October 31, 1997
    and 1996 accounts payable included outstanding checks drawn on controlled
    disbursement accounts of $2,082,355 and $1,698,208, respectively.

    (c)  Inventories -  Inventories are stated at the lower of cost
    (first-in, first-out) or market.  Major classes of inventories which
    include material, labor, and manufacturing overhead required in
    production of Company products consisted of the following as of
    October 31, 1997 and 1996:

                                        1997             1996
    Chassis                         $ 7,675,115     $ 6,466,570
    Raw materials & components        8,673,308       8,867,477
    Work-in-process                   4,173,173       3,061,276
    Finished goods                    5,164,426       5,219,836
                                    $25,686,022     $23,615,159

    (d)  Depreciation and Maintenance -  Depreciation is provided using the
    straight-line method for financial reporting purposes and accelerated 
    methods for income tax purposes.  The estimated useful lives of property 
    are as follows:

    Land improvements               10 to 20 years
    Buildings and improvements      10 to 30 years
    Machinery and equipment          3 to 15 years
    Office furniture and fixtures    3 to 10 years

    Maintenance and repairs are charged to expense as incurred.  The cost of
    additions and betterments are capitalized.  The cost and related
    depreciation of property retired or sold are removed from the applicable
    accounts and any gain or loss is taken into income.

    (e)  Revenue Recognition - The Company records vehicle sales at the
    earlier of completion of the vehicle and receipt of full payment or
    shipment or delivery to the customer as specified by the customer
    purchase order.  Customer deposits for partial payment of vehicles are
    deferred and treated as current liabilities until the vehicle is
    completed and recognized as revenue.

    (f)  Earnings Per Share - The computation of earnings per share is based
    on the weighted average number of outstanding common shares during the 
    period plus, when their effect is dilutive, common stock equivalents
    consisting of stock options.

    The weighted average number of shares used to calculate earnings per
    share was 7,806,373 in 1997, 7,621,403 in 1996 and 7,240,926 in 1995.

    In February 1997, the Financial Accounting Standards Board issued
    Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings
    per Share."  The new standard simplifies the computation of earnings
    per share (EPS) and increases the comparability to international
    standards.  Under SFAS No. 128 primary EPS is replaced by "Basic" EPS,
    which excludes dilution and is computed by dividing income available to
    common shareholders by the weighted-average number of common shares
    outstanding for the period.  "Diluted" EPS, which is computed similarly 
    to fully diluted EPS, reflects the potential dilution that could occur
    if securities or other contracts to issue common stock were exercised
    or converted into common stock.

    SFAS No. 128 is effective for periods ending after December 15, 1997 and
    does not allow for early adoption.  Upon adoption, all prior-period EPS
    information (including interim EPS) is required  to  be  restated.   Pro
    forma   EPS,  under  SFAS No. 128  for  each  of  the  three years ended
    October 31, 1997 is as follows:

                      1997     1996    1995
    Basic EPS        $  .99   $  .69  $(.05)
    Diluted EPS      $  .93   $  .65  $(.05)

    (g)  Cost of Sales - Cost of sales for the year ended October 31, 1997
    has been reduced by the $1.2 million gain from the sale of the Company's
    UVL" product line which was completed in May, 1997.

    (h)  Reclassification - Certain amounts in the prior year financial
    statements have been reclassified to conform with the 1997 presentation.




    (2)  Long-term Debt and Capitalized Leases

    Long-term debt and capitalized leases at October 31, 1997 and 1996
    consist of the following:
                                             1997            1996
    Bank credit facility:
      Revolving credit borrowings         $4,780,277     $ 6,360,948

      Term Loan A                          3,474,167       5,321,667

    10.75%, Term loan from
      insurance company                      662,500         788,342


    Capitalized leases:
      City of Hutchinson, Kansas,
        8.25% to 8.5%, due in 1998           164,891         430,441

      City of South Hutchinson,
        Kansas, 11%.  Annual
        principal and sinking fund
        payments are approximately
        $200,000 in 1998 and
        $175,000 in 1999                    375,000          540,160
 
    8.75%, subordinated debentures                0        1,102,294 

                                          9,456,835       14,543,852

    Less - current maturities             1,094,948        1,125,842

                                         $8,361,887      $13,418,010

    The Company has  a Loan Agreement with NationsBank of Georgia, N.A.,
    Atlanta, Georgia (the "Bank") for a revolving credit facility of $25.0
    million and a long-term credit facility of $8.05 million.

    The credit facility is collateralized by receivables, inventories,
    equipment and certain real property.  Under the terms of the Agreement, 
    the Company is required to maintain certain financial ratios and other
    financial conditions.  The Agreement also prohibits the Company from
    incurring certain additional indebtedness, limits certain investments,
    advances or loans and restricts substantial asset sales, capital
    expenditures and cash dividends.  At October 31, 1997 and 1996 the
    Company was in compliance with all loan covenants.

    The revolving credit facility requires payment of interest (only) at 1% 
    over the Bank's prime rate which was 8.50% at October 31, 1997.  The
    revolving credit facility also provides for a maximum of $3.0 million in
    letters of credit, of which $1.5 million was outstanding at October 31,
    1997.  The total amount of unused revolving credit available to the
    Company at October 31, 1997 was $9.1 million.

    The long-term facility includes a $6.2 million term loan  which is
    payable in monthly installments of $49,167 plus interest at 1% over
    the Bank's prime rate.  Term Loan A matures upon the expiration of the 
    Agreement in November, 1998.

    On September 30, 1991, a $1,250,000 10-year loan with a fixed interest
    rate of 10.75% was obtained from an insurance company to refinance
    existing manufacturing facilities.  The note matures in 2001 and is
    secured by the facilities which it finances.  Interest and principal are 
    payable in equal monthly installments of $17,042.  At October 31, 1997,
    the facilities had a net book value of $1,209,000.

    Certain of the Company's manufacturing facilities were financed from the
    proceeds of industrial revenue bonds.  Lease purchase agreements with
    the  respective  cities  provide  that  the  Company  may  purchase the
    manufacturing facilities at any time during the lease terms by paying
    the outstanding principal amount of the bonds plus a nominal amount.

    In fiscal 1996, the Company deposited approximately $1,023,000 in cash
    and U.S. Government securities into an irrevocable trust to complete an
    in-substance defeasance of the Company's 1989 Industrial Revenue Bonds
    with the City of Newton, Kansas.  The transaction did not result in any
    material gain or loss.  At October 31, 1997 the principal balance of the
    defeased debt was approximately $805,000.

    At October 31, 1997, the net book value of manufacturing facilities
    subject to these lease purchase agreements was approximately $2,306,000.

    In May, 1997, the Company retired at par value $1,102,294 in 8.75%
    subordinated debentures which were due in 2000.

    The extraordinary items of $420,444 ($.06 per share) for the year ended
    October 31, 1995 resulted from the retirement of certain subordinated
    debentures prior to their maturity.

    The carrying amount of the Company's long-term obligations does not
    differ materially from fair value based on current market rates
    available to the Company.

    The aggregate maturities of capitalized leases and long-term debt for
    the years subsequent to October 31, 1997 are as follows:    

          1998         $1,094,948
          1999          7,995,321
          2000            173,485
          2001            193,081

    (3)  Income Taxes

    The provision for income taxes for the year ended October 31, 1997
    includes current income tax expense of $1,954,000 and deferred income
    tax benefits of $354,000.

    There was no current or deferred tax expense for the years ended
    October 31, 1996 and 1995.  The Company utilized net operating loss
    carryforwards in 1997, 1996 and 1995.  The benefits of temporary
    differences were not recorded prior to 1997.

    The deferred tax consequences of temporary differences in reporting
    items for financial statement and income tax purposes were recognized
    in 1997.  Realization of the future  tax  benefits  related  to  the
    deferred tax assets is dependent  on  many factors,  including  the
    Company's ability to generate taxable income within the net operating
    loss carryforward period.   The  income  tax  effect  of  temporary 
    differences  comprising  the  deferred  tax  assets  and deferred tax
    liabilities on the accompanying consolidated balance sheets is a result
    of the following:    

                                        1997           1996
    Deferred tax assets:
      Self-insurance reserves       $  106,000      $   292,000
      Vacation                         153,000          158,000  
      Warranty                          88,000          130,000
      Doubtful accounts                 15,000           38,000
      Inventories                      349,000          212,000
      Subordinated debentures                0          420,000
      Amortization                     189,000           74,000
      Revenue recognition               80,000          121,000
      Federal tax operating loss
        and general tax  
        credit carryforwards                 0        1,233,000
      Other                             58,000           48,000
                                     1,038,000        2,726,000 

    Deferred tax liabilities:
      Depreciation                    (684,000)        (708,000)    
      Valuation allowance                    0       (2,018,000)
         Net deferred tax assets    $  354,000      $         0   

    A reconciliation between the statutory federal income tax rate (34%) and
    the effective rate of income tax expense for each of the three years
    during the period ended October 31, 1997 follows

                                         1997         1996        1995
    Statutory federal income
     tax rate                             34%          34%        (34%)
    Increase (decrease) in taxes
     resulting from:
      State tax, net of federal
       benefit                             4            4           0
      Increase in (utilization) of
       net operating loss
       carryforwards                     (14)         (38)         34 
      Decrease in tax asset
       valuation allowance                (9)           0           0
      Other                                3            0           0
    Effective tax rate                    18%           0%          0%



    (4)  Capital Stock

    Common Stock - During fiscal 1996 and 1995, the Company awarded 20,500 
    and 110,000 shares, respectively, of unregistered common stock to senior
    management which was treated as compensation.  During fiscal 1996,
    75,000 shares awarded in fiscal 1995 were rescinded.
 
    Warrants which were issued in connection with the 10.5% subordinated 
    debentures (retired in fiscal 1992) are exercisable until February 28,
    1998.  There are 479,999 warrants outstanding and each warrant may be 
    used to purchase 1.25 shares of common stock.  The exercise price of
    $9.75 per warrant will be payable in cash.  The warrants are redeemable
    by the Company at $3.00 per warrant at any time if the closing price for 
    the Company's common stock has been at least 150% of the then prevailing
    exercise price of the warrants for 20 of 30 consecutive trading days.
    
    Preferred Stock - On March 28, 1995 the Company's Board of Directors
    adopted a stockholders rights plan (Plan) and declared a dividend
    distribution of one right (Right) for each outstanding share of common
    stock to stockholders of record on April 20, 1995.  Under the terms of
    the Plan each Right entitles the holder to purchase one one-hundredth of
    a share of Series A Participating Preferred Stock (Unit) at an exercise 
    price of $7.44 per Unit.  The Rights are exercisable a specified number
    of days following (i) the acquisition by a person or group of persons of 
    20% or more of the Company's common stock or (ii) the commencement of a
    tender offer or an exchange offer for 20% or more of the Company's
    common stock or (iii) when a majority of the Company's unaffiliated
    directors (as defined) declares that a person is deemed to be an adverse
    person (as defined) upon determination that such adverse person has
    become the beneficial owner of at least 10% of the Company's common
    stock.  The Company has authorized and reserved 750,000 shares of
    preferred stock, $.10 par value, for issuance upon the exercise of the
    Rights.  The Company may redeem the Rights in whole, but not in part, at
    a price of $.01 per Right in accordance with the provisions of the plan.
    Rights expire on April 1, 2005 unless redeemed by the Company.

    Stock-Based Compensation Plans - The Company has two shareholder-approved
    stock plans, the 1997 Omnibus Incentive Plan (the "1997 Plan") and 1995
    Stock Option Plan (the "1995 Plan").  Under the 1997 Plan, directors,
    officers and key employees may be granted stock options and other
    stock-based awards.  A total of 2,000,000 shares may be granted under 
    the 1997 Plan.  At October 31, 1997, options for 502,500 shares were
    outstanding under the 1997 Plan.

    Under the 1995 Plan, a total of 1,000,000 shares of the Company's common
    stock were available for grant to officers, directors and key employees. 
    As of October 31, 1997, all of these shares had been granted and options 
    for 569,400 shares were outstanding under the 1995 Plan.

    Under both plans, the exercise price of all options granted through
    October 31, 1997 equaled the stock's market price on the date of grant
    and fully vest six months after the date of grant.  The expiration dates
    of the options range from 5 to 10 years.  Options outstanding at
    October 31, 1997 had a weighted average contractual life of eight years,
    five months and exercise prices ranged from $1.75 to $7.56.

    A summary of the Company's two stock option plans at October 31, 1997,
    1996 and 1995 and changes during the years then ended are presented in 
    the table following:

                                1997           1996           1995
                                 Per                Per                Per  
                      Shares  Share (a)  Shares  Share (a)  Shares  Share (a)
    Outstanding
    at beginning
    of year          814,500    $1.89   745,000    $1.80   600,000    $1.77
    
    Granted          677,300     4.55   147,000     2.27   180,000     1.92

    Exercised       (411,400)    1.84   (10,000)    1.88         0        0

    Forfeited         (8,000)    4.81   (67,500)    1.86   (35,000)    1.75

    Outstanding
    at end of
    year           1,072,400    $3.57   814,500    $1.89   745,000    $1.80

    Exercisable
    at end of
    year           1,069,900    $3.56   797,000    $1.82   740,000    $1.80

    Weighted
    average
    fair value
    of options                  $1.50               $.81               $.78

    (a) Weighted average exercise price per share.  

    The fair value of each option grant is estimated using the Black-Scholes
    option pricing model with the following assumptions used for grants in
    1997, 1996 and 1995 respectively:  risk free interest rate of 6.76% for
    the 1997 Plan options and a range from 5.36% to 7.37% for the 1995 Plan
    options; expected dividend yield of 1.5%; expected life of four years;
    and expected volatility of 50.5%.

    The Company applies Accounting Principles Board Opinion No. 25, 
    accounting for Stock Issued to Employees, in accounting for its Plans. 
    Accordingly, no compensation expense has been recognized for its
    stock-based compensation plans other than for restricted stock awards,
    which was not significant.

    Had compensation cost for the Company's stock options been determined 
    consistent with the methodology prescribed under FASB Statement No. 123,
    Accounting for Stock-Based Compensation, the CompanyOs net income (loss)
    and income (loss) per share would have been reduced to the following 
    pro forma amounts:   

                                   1997           1996           1995
    Net income (loss)
      As reported              $7,243,216      $5,012,067      $(340,759)
      Pro forma                 6,993,318       4,940,057       (386,609)
      
    Earnings (loss)
     per share 
      As reported                    $.93            $.66          $(.05)
      Pro forma                       .90             .65           (.05)

    Because the FASB Statement No. 123 method of accounting has not been
    applied to options granted prior to January 1, 1995, the resulting pro
    forma compensation cost may not be representative of that to be expected
    in future years.

    (5) Tax Deferred Savings Plan and Trust

    In 1985 the Company made available to all eligible employees the
    opportunity to participate in the Company's Tax Deferred Savings Plan
    and Trust.  The Company provides a 50% matching contribution in the 
    form of unregistered common stock of the Company on the eligible amount
    invested by participants in the plan to purchase common stock of the
    Company.  The Company's contribution to this plan was $71,130 in 1997,
    $74,858 in 1996 and $86,365 in 1995.  This plan held 405,325 shares of
    the Company's common stock at October 31, 1997 and 458,588 shares at
    October 31, 1996.
    
    (6)  Commitments and Contingencies

    (a)  General - The preparation of financial statements in conformity 
    with generally accepted accounting principles requires management to
    make estimates and assumptions that affect the reported amounts of
    assets and liabilities and disclosure of contingent assets and 
    liabilities at the date of the financial statements and the reported
    amounts of revenues and expenses during the reporting period.  Actual
    results could differ from those estimates.

    (b)  Repurchase Agreements - It is customary practice for companies in
    the specialty vehicle industry to enter into repurchase agreements with 
    financing institutions to provide floor plan financing for dealers. 
    Generally, these agreements provide for repurchase of products from the
    financing institution at the original invoice price in the event of
    dealer default.  

    Under  these  agreements,  the  Company's  repurchase  obligation is 
    limited to vehicles which are in new condition and as to which the
    dealer still holds title.  At October 31, 1997, the Company had
    repurchase agreements covering units with an aggregate invoice cost of
    approximately $814,000.

    The risk of loss under the agreements is limited to the risk that market
    prices for these products may decline between the time of delivery to
    the dealer and time of repurchase by the Company.  The risk is spread 
    over numerous dealers and the Company has not incurred significant 
    losses under these agreements.  The Company also has repurchase
    agreements for a limited number of used vehicles.  In the opinion of 
    management, any future losses under these agreements will not have a
    material adverse effect on the Company's financial position or results
    of operations.

    (c) Letters of Credit - The Company has outstanding letters of credit 
    as more fully described in Note 2.

    (d)  Operating Leases - The Company has operating leases principally for
    certain vehicles and equipment.  Future lease payments required under 
    these operating leases are not material.

    Operating lease expense was $184,813 in 1997, $222,542 in 1996 
    and $167,178 in 1995.

    (e)  Litigation - At October 31, 1997 the Company has litigation pending
    which arose in the ordinary course of business.  Litigation is subject
    to many uncertainties and the outcome of the individual matters is not
    presently determinable.  It is management's opinion that this litigation
    will not result in liabilities that would have a material adverse effect
    on the Company's financial position or results of operations.

    (f)  Self-insurance Reserves - The Company is self-insured for workers
    compensation, health insurance, general liability and product liability
    claims, subject to specific retention and reinsurance levels.

    (g)  Chassis Contingent Liabilities - The Company obtains certain vehicle
    chassis from two automotive manufacturers under agreements that do not
    transfer the vehicle's certificate of origin to the Company and,
    accordingly, the Company accounts for the chassis as consigned inventory.
    Chassis are typically converted and delivered to customers within 90 
    days.

    (7)  Subsequent Event

    In November 1997, the Company entered into a capitalized lease agreement
    with the City of South Hutchinson, Kansas for the issuance of $3.5
    million of 1997 Industrial Revenue Bonds.  The Bonds will bear interest
    at annual rates ranging from 4.75% to 5.80% and will mature serially
    over a period of ten years.  The Bonds will be callable at par on 
    February 1, 2003.  The net proceeds will be used to construct and equip 
    an addition to the Company's bus manufacturing facilities. 



    Report of Independent Public Accountants 


    To the Board of Directors and
    Shareholders of Collins Industries, Inc.

    We have audited the accompanying consolidated balance sheets of Collins
    Industries, Inc.  (a Missouri corporation) and Subsidiaries as of
    October 31, 1997 and 1996, and the related consolidated statements of
    income, shareholders' investment and cash flows for each of the three
    years in the period ended October 31, 1997.  These financial statements
    are the responsibility of the Company's management.  Our responsibility
    is to express an opinion on these financial statements based on our
    audits. 

    We conducted our audits in accordance with generally accepted auditing
    standards.  Those standards require that we plan and perform the audit
    to obtain reasonable assurance about whether the  financial statements
    are free of material misstatement.  An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in the
    financial statements.  An audit also includes assessing the accounting
    principles used and significant estimates made by management, as well
    as evaluating the overall financial statement presentation.  We believe
    that our audits provide a reasonable basis for our opinion.

    In our opinion, the financial statements referred to above present 
    fairly, in all material respects, the financial position of Collins
    Industries, Inc. and Subsidiaries as of October 31, 1997 and 1996, and
    the results of their operations and their cash flows for each of the
    three years in the period ended October 31, 1997, in conformity with
    generally accepted accounting principles.

    Our audit was made for the purpose of forming an opinion on the basic
    financial statements taken as a whole.  The schedule listed in Part IV,
    Item 14(a)(2) is the responsibility of the Company's management and is
    presented for purposes of complying with Securities and Exchange 
    Commission's rules and is not part of the basic financial statements.  
    This schedule has been subjected to the auditing procedures applied in
    the audit of the basic financial statements and, in our opinion, fairly
    states in all material respects the financial data required to be set
    forth therein in relation to the basic financial statements taken as a
    whole.

    ARTHUR ANDERSEN LLP



    Kansas City, Missouri
    November 25, 1997


    Item 9.  DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE



    None



                                  PART III


    Item 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

    Information with respect to Directors and Executive Officers is
    contained in the section entitled "Management" in the Proxy Statement
    for the Annual Meeting of Shareholders to be held February 27, 1998,
    and is incorporated herein by reference.


    Item 11.  EXECUTIVE COMPENSATIONS

    Information with respect to executive compensation is contained in the 
    section entitled "Executive Compensation" in the Company's Proxy
    Statement for the Annual Meeting of Shareholders to be held on
    February 27, 1998, and is incorporated herein by reference.


    Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
              MANAGEMENT

     Information with respect to security ownership of certain beneficial
     owners and management is contained in the section entitled "Security
     Ownership of Certain Beneficial Owners and Management" in the Company's
     Proxy Statement for the Annual Meeting of Shareholders to be held on
     February 27, 1998.


    Item 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

    None


                                     PART IV

    Item 14.  EXHIBITS FINANCIAL STATEMENT SCHEDULES, REPORTS
              ON FORM 8-K

              (a)  The following documents are filed as a part of this
                   Report:

                   (1)  Financial Statements:  

                        All financial statements and notes thereto as set
                        forth under Item 8 of this Report on Form 10-K:

                        Report of Independent Public Accountants

                        Consolidated Statements of Income for  
                        the Three Years Ended October 31, 1997 

                        Consolidated Statements of Shareholders' Investments
                        for Three Years Ended October 31, 1997

                        Consolidated Statements of Cash Flows for
                        the Three Years Ended October 31, 1997

                        Consolidated Balance Sheets--October 31, 1997
                        and 1996  


                   (2)  Financial Statement Schedules:    

                        Schedule II--Valuation and Qualifying Accounts 
 
                        Schedules other than those referred to above have  
                        been omitted as not applicable or not required
                        under the instructions contained in Regulation S-X 
                        or the information is included in the financial
                        statements or notes thereto.

                   (3)  Exhibits:

      Exhibit Number    Document

           3.1       -  Certificate of Incorporation of Registrant,
                        as amended (included as Exhibit 3.1 of the
                        Company's Amendment No. 2 to Form S-1, No. 2-93247
                        and incorporated herein by reference). 

            3.2      -  Amendment to Certificate of Incorporation of
                        Registrant (included as Exhibit 3.3 of the
                        Company's Amendment No. 1 to Form S-1, 
                        No. 2-93247 and incorporated herein by reference).

            3.3      -  Amendment to Certificate of Incorporation of
                        Registrant (included as Exhibit 3.3(c) of the
                        Company's Amendment No. 1 to Form S-1, No 33-48323 
                        and incorporated herein by reference). 

            3.4      -  By-Laws of the Registrant, as amended (included as
                        Exhibit 3.4 of the Company's S-1, No. 33-48323 and 
                        incorporated herein by reference).

            4.1      -  Indenture, dated as of November 1, 1984, between
                        the Company and Allied Bank of Texas, as Trustee
                        (included as Exhibit 4.3 of the Company's
                        Registration Statement on Form S-1, No. 2-93247 and
                        incorporated herein by reference).

            4.2      -  Form of Representatives Warrants (included as
                        Exhibit 4.8 on the Company's Registration
                        Statement on Form S-1, No. 2-93247 and incorporated
                        herein by reference).


      Exhibit Number    Document

            4.3      -  Warrant Agreement dated as of November 1, 1984,
                        between the Company and Allied Bank of Texas, as
                        Warrant Agent (included as Exhibit 4.5 on the 
                        Company's Registration Statement on Form S-1,
                        No. 2-93247 and incorporated herein by reference). 

            4.4      -  Extension Agreement as to Warrant Agreement between
                        Registrant and First Interstate Bank of Texas,
                        N.A., dated February 11, 1991 (included as Exhibit
                        4(d) to Registrant's Registration Statement on 
                        Form S-1, No. 33-40035 and incorporated herein by
                        reference).

            4.5      -  Extension Agreement as to Warrant Agreement between
                        Registrant and First Interstate Bank of Texas,
                        N.A., dated February 12, 1992 (included as Exhibit 
                        4.5 of the Company's Registration Statement on
                        Form S-1, No 33-48303 and incorporated herein by
                        reference).

            4.6      -  Specimen Common Stock Certificate (included as
                        Exhibit 4.1 to Company's Amendment to its
                        Registration Statement on Form S-1, No. 2-81977
                        and incorporated herein by reference).

            4.7      -  Rights Agreement dated as of March 28, 1995 between
                        the Registrant and Mellon Bank, N.A. (included
                        as Exhibit 1 to Form 8-A filed with the SEC as
                        of March 28, 1995).   

            4.8      -  First Amendment to the Rights Agreement dated as
                        of April 25, 1995 (included as Exhibit 4 to
                        Form 8-A/A filed with the SEC as of May 8, 1995.

      Exhibit Number    Document

           10.1      -  Lease dated November 1, 1981, between the 
                        Registrant and Hutchinson Air Base Investors
                        (included as Exhibit 10.1 to the  Company's
                        Registration Statement on Form S-1, No. 2-81977
                        and incorporated herein by reference).

           10.2      -  Lease dated August 14, 1979, by and between
                        the Registrant and city of Hutchinson, Kansas
                        (included as Exhibit 10.2 to the Company's
                        Registration Statement on Form S-1, No 2-81977
                        and incorporated herein by reference).

           10.3      -  Various bailment and consignment agreements
                        between the Registrant and Automotive manufacturers
                        (included as Exhibit 10.2 to the Company's
                        Registration Statement on Form S-1, No. 33-48323
                        and incorporated herein by reference).

           10.4      -  Lease dated August 1, 1984 between the city of
                        South Hutchinson, Kansas (included as Exhibit
                        10.11 of the Company's Registration Statement on   
                        Form S-1, No. 2-93247 and incorporated herein by
                        reference). 

           10.5      -  Lease Agreement dated October 1, 1989 between
                        Registrant and the city of Newton, Kansas.
                        (Incorporated herein by reference to Exhibit 10.17
                        to Registrant's Report on Form 10-K for the fiscal
                        year ended October 31, 1989.) 

      Exhibit Number    Document 

          10.6       -  Promissory Note and Security Agreement between 
                        Capacity of Texas, Inc. and Metlife Capital
                        Corporation dated September 30, 1991. (Incorporated
                        herein by reference to Exhibit 10.20 to Registrant's
                        Report on Form 10-K for the fiscal year ended
                        October 31, 1991.)

          10.7       -  Form of Indemnification Agreement between Registrant
                        and its directors.  (Incorporated herein by reference 
                        to Exhibit 10.21 to the Registrant's Report on Form 
                        10-K for the fiscal year ended October 31, 1991.) 

          10.8       -  Loan and Security Agreement for 33.05 million credit
                        facility dated May 9, 1995 between Registrant and
                        NationsBank of Georgia, N.A. (Incorporated herein
                        by reference to Exhibit 10.14 to Registrant's Report 
                        on Form 10-Q for the fiscal period ended July 31,
                        1995.)

       Exhibit Number   Document

          21.1       -  The following are the names and jurisdiction of 
                        incorporation of the subsidiaries of the Company:
                        
                                                            Jurisdiction
                        Names                             of Incorporation
                        Collins Bus Corporation                 Kansas
                        Capacity of Texas, Inc.                  Texas
                        Wheeled Coach Industries, Inc.          Florida  
                        Collins Ambulance Corporation           Kansas  
                        Collins Financial Services, Inc.        Kansas
                        Global Captive Casualty 
                          and Surety Company                    Kansas
                        Mobile-Tech Corporation                 Kansas
                        World Trans, Inc.                       Kansas

          27.0       -  EDGAR Financial Data Schedule 

           (b) Reports on Form 8-K

               There were no reports filed on Form 8-K by the Company
               during the fourth quarter ended October 31, 1997.




                  COLLINS INDUSTRIES, INC. AND SUBSIDIARIES

                SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS     


                                Balance                              Balance
                                   at      Charged     Deductions      at
                               Beginning      to          From       End of
                               of Period    Income       Reserve     Period

                                                 (In 000s)

     ALLOWANCE FOR DOUBTFUL
       ACCOUNTS:

       For the year ended
        October 31, 1997         $  98     $  47          $ 106       $  39

       For the year ended
        October 31, 1996         $  81     $  54          $  38       $  98

       For the year ended
        October 31, 1995         $  95     $  51          $  64       $  82 





                                    SIGNATURES

       Pursuant to the requirements of the Securities Exchange Act of 1934,
       the Registrant has duly caused this report to be signed on its
       behalf by the undersigned, thereunto duly authorized.

                                      COLLINS INDUSTRIES, INC. 

                        By            /s/Don L. Collins
                                      Don L. Collins, Chairman  
                                      and Chief Executive Officer

       Dated:    January 29, 1998
                        By            /s/ Larry W. Sayre
                                      Larry W. Sayre, Vice President
                                      Finance and Chief Financial Officer
                                      (Principal Accounting Officer)          


       Pursuant to the requirements of the Securities Exchange Act of 1934, 
       this report has been signed by the following persons on behalf of
       the Registrant, in their capacities as Directors of the Registrant,
       and on the dates indicated.



       Dated:   January 29, 1998      /s/ Don L. Collins
                                      Don L. Collins


       Dated:   January 29, 1998      /s/Donald Lynn Collins
                                      Donald Lynn Collins


       Dated:   January 29, 1998      /s/ Lewis W. Ediger
                                      Lewis W. Ediger

       Dated:   January 29, 1998      /s/ Arch G. Gothard
                                      Arch G. Gothard

       Dated:   January 29, 1998      /s/ Robert E. Lind
                                      Robert E. Lind

       Dated:   January 29, 1998      /s/ Don S. Peters
                                      Don S. Peters